Corporate Tax Registration in the UAE for New and Existing Companies

Under FTA Decision No. 3 of 2024, a resident company incorporated in the UAE on or after 1 March 2024, including a free zone company, must apply within three months of its incorporation or establishment date. A foreign company that is resident because it is managed and controlled from the UAE has three months from the end of its financial year.

Companies that already existed on 1 March 2024 were given staggered dates in 2024 based on the month their licence was issued, ignoring the year. Licences from January or February had to register by 31 May 2024, March or April by 30 June, May by 31 July, June by 31 August, July by 30 September, August or September by 31 October, October or November by 30 November, and December by 31 December 2024. If a company held several licences, the earliest one counted.

All those 2024 dates have now passed. If your company was one of them and is still unregistered, it is already late and should file without further delay. Confirm the latest rules before you apply.

Under Cabinet Decision No. 75 of 2023, missing the Corporate Tax registration deadline leads to a fixed administrative penalty of AED 10,000. It is charged per taxable person, not per licence.

The FTA has announced a waiver for this penalty. At the time of research, the FTA says the penalty is waived automatically if the company files its first Corporate Tax return, or annual declaration for exempt persons, within seven months of the end of its first tax period, instead of the normal nine months. Where the penalty was already paid, the FTA credits it back to the EmaraTax account.

Do not plan around the waiver. Its conditions are narrow and could change, and filing early in the first year means preparing accounts sooner. Registering on time is simpler. Check the FTA website for the current position.

A free zone company can pay 0% Corporate Tax on its qualifying income if it meets the conditions to be a Qualifying Free Zone Person. In short, it must keep adequate substance in the free zone, earn qualifying income, not elect to be taxed at the standard rate, follow transfer pricing rules, and prepare audited financial statements.

Non-qualifying income is taxed at 9%. There is also a de minimis rule: if non-qualifying revenue goes above 5% of total revenue or AED 5 million, whichever is lower, the company can lose qualifying status. A Qualifying Free Zone Person also cannot use Small Business Relief.

None of this happens without registration. Registering does not make you a Qualifying Free Zone Person by itself, but you cannot claim the status without it. Because the conditions are detailed, take tax advice on your own activities.

For most mainland companies, taxable income up to AED 375,000 is taxed at 0% and income above that at 9%. Small Business Relief may let eligible resident companies with revenue of AED 3 million or less be treated as having no taxable income, for tax periods ending on or before 31 December 2029, following a Ministry of Finance extension announced in 2026. You must elect it in your return, so confirm the current conditions first.

Your first Corporate Tax return is normally due within nine months of the end of your first tax period. Your tax period usually follows your financial year, which is why we confirm the year end during registration.